Gen Z and the Future of Homeownership: What the Data Says

Homeownership has long been viewed as a central part of the American dream. But for Generation Z, that dream looks different than it did for previous generations.

Drawing on the latest research from the National Association of REALTORS® (NAR) and related Realtor.com surveys, it’s clear that Gen Z’s approach to buying a home blends pragmatism, ambition, financial caution, and evolving lifestyle priorities.

Who Are Gen Z Homebuyers Today?

Gen Z buyers, typically defined as individuals born between the late 1990s and early 2010s, are still emerging into the housing market. According to NAR’s 2025 Home Buyers and Sellers Generational Trends Report, Gen Z represents a small share of recent buyers—around 3 % of all home purchases—reflecting their younger age and early stage in household formation.

Compared with older generations, Gen Z buyers tend to have lower household incomes and are less likely to be married or have children at the time of purchase.

The Big Picture: Homeownership Still Matters

Despite barriers, Gen Z remains committed to the idea of owning a home. Surveys show that significant majorities see homeownership as a lifetime goal and value it as a way to build wealth and financial security. For instance, many respondents believe buying a home is harder for their generation than it was for older cohorts—but still say it’s important to their long-term goals.

However, affordability is their biggest challenge. Most Gen Zers acknowledge that they’re not yet financially ready to buy, with fewer than half feeling prepared to take the leap.

Affordability First: What Matters Most

When it comes to what Gen Z wants in a home, price clearly tops the list:

• Ideal price point: The most important factor for roughly one-third of Gen Z prospective buyers is finding a home at the right price.
• Size and space: After price, Gen Z prioritizes a home that meets their needs in terms of size and practical space (like bedrooms).
• Location: Being in an ideal location—whether for career opportunities, lifestyle, or proximity to community—also plays a significant role, though it trails price and size.

In terms of size, nearly half of respondents say their ideal home would have three bedrooms, with about 90% comfortable with 2–4 bedroom options—suggesting a desire for flexibility and future planning.

Gen Z Priorities Beyond Price

While affordability is paramount, Gen Z homebuyers also care about practical features and long-term value:

• Many are optimistic about buying a “forever home”—nearly half say they plan to wait for the right property rather than settling for any starter home.
• Unlike some wealth-focused investors, relatively few Gen Z buyers view their first home as a short-term investment property.

This reflects a practical, long-term mindset, where selecting a home that fits their lifestyle—and stays within financial reach—is more important than potential rental income or quick flips.

Practical Strategies for Homeownership

Gen Z isn’t just dreaming—they’re acting strategically:

• Many are saving for down payments, often above the typical average for younger buyers.
• Some are pursuing second jobs or side hustles, moving to more affordable regions, or delaying buying until their career and finances stabilize.

These behaviors underline Gen Z’s belief that financial stability is central to achieving homeownership, even if it means a longer path to closing.

What This Means for the Housing Market

Gen Z’s entry into homeownership is still in the early chapters—but trends suggest that when they buy, they’ll bring a blend of practicality, intention, and evolving lifestyle expectations:

• Affordability first: Markets with lower housing costs will continue to attract younger buyers.
• Purposeful buying: This generation is more cautious about overextending financially and values long-term comfort over speculative gains.
• Lifestyle balance: While price and size matter, location and meaningful features (like flexible space or community access) also play a role.

As Gen Z continues to age into peak homebuying years, their distinct preferences will shape how homes are marketed, designed, and financed in the years ahead.